Organizational Assets
Organizational assets are the total economic value of a business organization that includes the ones generating revenue for the entity and the primary assets associated with the organization. Based on the time period over which an organization can gain income from the assets, is classified into Present Assets and Future Value Assets.
Present Assets
The present assets include all the liquid and non liquid assets associated with an organization. It includes all the machinery, inventory, value of buildings, raw materials and finished products. In simple words it can be defined as the current economic value of the entire organization.
Future value of assets
It includes the calculated value of the assets that it would fetch in the market when sold in the future. This includes the futuristic values of the products, future market value of equipments, buildings, etc.
An organization will purchase various assets, so as to increase the value of it and generate future cash flow. By investing in these assets, the organization tries to earn a return out of it.
Hence the total productivity of an organization is based on its capacity to manage these assets. Every organization must maintain a record of their yearly asset value and the total expenditure in order to maintain good profit.
To the point and well written. Sindhuja also managed to discuss its difference to cash flow. I will definitely check out a company’s assets when I am evaluating which stocks to invest. It is definitely important to look at the ability of a company to manage itself especially when determining future investments.